Trading Lesson Part One With Technical Analysis

It is too easy to accrue knowledge about something but implications part most difficult, so I share my knowledge and my working experiences of the financial market, how to implement your knowledge into real world.

There are few methods to analyse securities and financial instruments to make investment or trading decisions like fundamental analysis, technical analysis, quantitative analysis, economic analysis, news analysis but basically fundamental and technical analysis are in use.

Fundamental analysis is used to analyzing the characteristics of a company in order to valuations, future growth, P&L analysis, excel modelling, calculations and impacts of govt. policy’s and many more things on the list, basically this analysis are used for the Long-term investment decisions, you could make lots of money with this but long term investments are comes from reserve and surplus funds, if you have it go for it.

Technical analysis is completely different from the fundamental analysis. In case of technical analysis is for the hourly, daily, weekly traders basically for the short term trader and investor, if you need regular income from securities markets you need to learn about technical analysis, Technical analysis doesn’t care value of the company, it’s all about understand demand and supply and interested in price movement in the market, understand the trend and directions of the Stocks, Forex and Commodities into the charts.

To understand the demand and supply, trend we have to use some chart pattern, tools, Techniques, indicator, oscillator, support and resistance and moving averages many more.

In technical analysis field some rules are important like

i) Market can discount everything

ii) History repeats itself

iii) Sometime history not repeating itself

iv) Trend is your friend

Comments

Nifty Elliot Wave theory explained with projection of wave 4

NSE:NIFTY Till date Nifty on wave 3 on larger degree of Elliot wave Explanations:- ** If we subdivided wave into shorter degree or in 5 wave its match with Fibonacci retrenchment levels in all subdivision of wave 1. ** On wave 2 which is a corrective wave also match with Elliot wave rules and its take corrections within 50% of wave 1. ** On wave 2 subdivision are also match with corrective wave patterns. ** Now comes to Wave 3 which is need to match with Elliot wave theory where Fibonacci levels should be 161.8% of wave 1 , which is 11340 approx. ** If the wave 3 subdivided into shorter wave degree, we can see the 5th wave is forming and it has to be within 1.236-1.618% of wave , equal to wave 1 or 61.8% of wave 1+3 . ** So now comes to conclusion on 5th wave * Either 1.236- 1.618% Fibonacci levels of wave 4 ...

Dow_Jones

US Market take a short correction and it go upward from the current view point Dow Joe Can breach previous high this time if all data are favorable to US economy

Possible double top formation can be seen in the near term on LT

Larsen & Toubro Outlook: Possible double top formation can be seen in the near term on LT where 1st phase or 1st top already completed now all could do assumed that possible next top formation going to be happened within month. We can see that TOP-1 having a heavy selling pressure on 1200 level which is the previous top High and demand continued on 1100 level which is our possible neck line which is also shown strong support and continued decline on volume . In case of Possible TOP-2 which High (1195) is also within 3% compare to previous TOP-1 High (1225) because TOP-2 high within 3% so we must consider as a TOP-2. In case if all the possibilities are going to be happened our neck line should be on 1100 level with possible Targets are - 1050/1012/975 but Stop Loss is not still clear so we must wait for good stop area formation and neck line break.

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